Which of the following correctly explains how to find the price of a $1,000 par value, 20-year 8% coupon bond with semiannual payments and a yield to maturity of 6%?

a. FV of a 20 period $80 ordinary annuity at a discount rate of 6% per period plus the PV of a $1,080 lump sum payment in 20 periods at a discount rate of 6% per period.

b. PV of a 40 period $40 ordinary annuity at a discount rate of 3% per period plus the PV of a $1,000 lump sum payment in 40 periods at a discount rate of 3% per period.

c. PV of a 20 period $80 ordinary annuity at a discount rate of 6% per period plus the PV of a $1,000 lump sum payment in 20 periods at a discount rate of 6% per period.

d. PV of a 40 period $60 ordinary annuity at a discount rate of 4% per period plus the PV of a $1,000 lump sum payment in 40 periods at a discount rate of 4% per period.

e. PV of a 20 period $80 ordinary annuity at a discount rate of 6% per period plus the PV of a $1,080 lump sum payment in 20 periods at a discount rate of 6% per period.